Uber loses $1bn in first quarter
Uber saw losses widen to $1bn in its first quarterly update as a listed public company.
Losses at the ride-hailing app doubled year-on-year during the first quarter to more than $1bn. Uber pointed to competition pressures, which had resulted in the business paying higher incentives to attract drivers.
The company’s revenues totalled $3.1bn over the first three months of 2019, which represented a 20 per cent increase year-on-year.
Uber has been spending heavily to grow its market share and beat competitors, such as Lyft in the US, while also investing in the development of autonomous vehicles.
Its first quarter update follows a lacklustre IPO, which saw shares fall from $41.57 just after flotation to $37.10 three days later.
Uber’s share price has recovered slightly and today trades around $39.80.
Uber’s growth has been exponential in recent years and it has established itself as a disruptive business model in the taxi industry, with a presence in more than 60 countries. However, the business remains loss-making.